XRP faces further downside risk as 41.5% of holders are underwater at current prices. Glassnode reports that despite trading 4x higher than in November 2024, a significant portion of XRP supply is in loss, indicating a top-heavy market dominated by late buyers.

IG Australia analyst Tony Sycamore notes that many XRP holders bought above $3.00, leading to widespread unrealized losses. The recent sell-off blindsided long-term hodlers and newer entrants, raising the risk of further downside. A rebound above $2.70 is needed to restore sentiment.

ETF launches expected to boost XRP’s bullish momentum have not yet impacted the price, which remains at $2.14, down over 40% from its all-time high in July. Despite the launch of the first spot-XRP ETF by Canary Capital, XRP has not seen a resurgence in price, indicating ongoing challenges for the cryptocurrency.

Read more at Cointelegraph: Data Shows 41.5% Of XRP Holders Are Now Underwater